THE REASON FOR THE DIFFICULTY IN PRODUCTION AND EXPORT DOES NOT LAST 1-2 MONTHS BUT WILL CONTINUE FOR THE NEXT ONE TO TWO QUARTERS

According to data from the General Statistics Office, in April, the index of industrial production only increased by 0.5% over the same period last year, of which the growth of the manufacturing industry was only 0.2%, low. than the overall growth of the sector.

THE REASON FOR THE DIFFICULTY IN PRODUCTION AND EXPORT DOES NOT LAST 1-2 MONTHS BUT WILL CONTINUE FOR THE NEXT ONE TO TWO QUARTERS

Mr. Tran Ngoc Bau said that the new world is about to return to stop raising interest rates and return to stimulating demand. The delay from stimulus to production takes 3-6 months. Difficulties in production and export do not last 1-2 months but last one to two quarters.

According to data from the General Statistics Office, in April, the index of industrial production only increased by 0.5% over the same period last year, of which the growth of the manufacturing industry was only 0.2%, low. than the overall growth of the sector.

In April, the industries that restrained the growth of the manufacturing and processing industry were all export pillars such as electronics manufacturing (down 4.3% over the same period), apparel (down 1%). .8%), wood (down 9.6%) and machinery and equipment (down 1%).

The manufacturing PMI continued to shrink, falling to 46.7 points from 47.7 points in the previous month. While new orders continued to decline, finished goods inventories in April reached the highest level in 2 years. New orders fell faster than export orders, indicating a sharper drop in domestic demand.

Recently on the Finance and Business channel, Mr. Tran Ngoc Bau, CEO of WiGroup, said that the manufacturing sector is weaker than even during the COVID-19 period and has not shown any signs of recovery.

"The negativity in the manufacturing sector continues, can't expect the manufacturing sector to accelerate in May or June," he said.

According to the CEO of WiGroup, in order to forecast the time when production will recover, it is necessary to look at the health of the global economy and the global PMI.

"Global production entered a difficult period, shrinking from June and July 2022, 6 months later, ie October 2022, the Vietnamese economy began to face difficulties. It is necessary to consider the manufacturing sector. According to available data, global production is still negative, below 50 points Even if growth returns, it will take 2-3 months for Vietnam to recover. benefit," he analyzed.

Mr. Tran Ngoc Bau said that the new world is about to return to stop raising interest rates and return to stimulating demand. The delay from stimulus to production takes 3-6 months. Difficulties in production and export do not last 1-2 months but last one to two quarters.